The last time we heard from Denis Dyack's studio Silicon Knights, they of Eternal Darkness and Too Human fame, the developers had just received 3 million Canadian dollars to help them become 'self-sustaining'. Now, however, reports have come to light suggesting that the studio has laid off three quarters of its workforce.
According to 1UP, 'two credible independent sources' contacted them both reporting the news. 'Silicon Knights has had massive layoffs. They are now down to a core staff of 25 people,' wrote one, with the other stating 'It may interest you to note that SK laid off all but 25 employees today.'
This is going to benefit Silicon Knights in ways that are profound and long-lasting,' said Dyack a few months back, referring to the influx of money from the Canadian government, which he also reported would allow the studio to keep their current staff and create space for more. 'With Ontario government support, we are better-positioned to further develop the eighth art of video games. This will enhance our competitive edge within the highly-competitive video game market, help us become a self-sustainable, self-publishing entity, and allow us to enter lucrative global markets.'
What went wrong? Silicon Knights aren't saying or confirming anything at the moment. 'I heard they laid off all of HR including Denis' wife,' one of the sources reported. The studio's most recent project was the widely panned title for Activision - X-Men Destiny. If true, perhaps that might have something to do with it.